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Constitutional Law Keyed to Farber
Granholm v. Heald
Citation:
544 U.S. 460 (2005)Facts
Michigan and New York regulate alcoholic beverage sales through three-tier distribution systems requiring separate licenses for producers, wholesalers, and retailers. Michigan allows its approximately forty in-state wineries to obtain licenses permitting direct shipment to consumers for as little as twenty-five dollars, while out-of-state wineries face a complete ban on direct shipment and must sell only through in-state wholesalers. New York permits wineries producing wine from New York grapes to ship directly to consumers but requires out-of-state wineries to establish a physical presence in New York (a branch factory, office, or storeroom) to gain direct-shipment privileges. Small wineries like Domaine Alfred in California, Swedenburg Estate Vineyard in Virginia, and Lucas Winery in California rely on direct consumer sales but cannot access Michigan and New York markets due to these restrictions. The discriminatory treatment increases costs for out-of-state wines and effectively bars small wineries from these markets.
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